Duration of Fulfillment
The duration over which a performance obligation is fulfilled is determined by combinations of start date, end date, and duration.
Start Date
This specifies the start date of the duration over which the performance obligation is to be fulfilled.
End Date
This specifies the end date of the duration over which the performance obligation is to be fulfilled.
Duration
This specifies the length of the period during which the performance obligation is to be fulfilled.
Start Date Type
When the back-end operational system requests the creation of a time-based performance obligation, it can specify how the start date is determined by using the Start Date Type
attribute.
1 - Available on Creation of Performance Obligation
This indicates that the start date must be specified when the performance obligation is created. The system reports an error if the start date is missing.
2 - Available After Creation of Performance Obligation
This indicates that the start date does not have to be specified when the performance obligation is created. Until the start date is specified later, the fulfillment of the performance obligation does not proceed.
3 - Is Always the Event Date
This option allows for two scenarios. If the performance obligation is a linked performance obligation, the start date of the duration is always the date of the fulfillment event that occurs on its leading performance obligation. If the performance obligation is not a linked performance obligation but its time-based fulfillment starts from an event that occurs on that performance obligation, the start date is always the date of its own fulfillment event.
Scenarios
The following scenarios are typical scenarios with different combinations of start date, end date, duration, and start date type.
Scenario | Start Date | End Date | Duration | Start Date Type | Description |
|---|---|---|---|---|---|
1 | x | x | 1 | Fulfilled over a period of time, starting from a specified date to a specified date. | |
2 | x | x | 1 | Fulfilled over a period of time of a specified length, starting from a specified date | |
3 | 2 | Fulfilled over a period of time that cannot be determined at the time of contract creation. | |||
4 | x | 3 | Fulfilled over a period of time of a specified length. The fulfillment starts from the occurrence of an event. | ||
5 | x | 3 | Fulfilled over a period of time that ends on a specific date, with its start date to be specified later. This scenario is rare. Unless customized otherwise, the system by default issues a warning when the back-end system requests the creation of such a performance obligation. |